Focus on youth and women empowerment, emphasis on maintaining fiscal consolidation and continuing capex, and no changes in indirect and direct tax rates comprise the key highlights of the interim Budget, the last before Lok Sabha elections.
Finance Minister Nirmala Sitharaman also lowered the FY25 fiscal deficit target to 5.1% of the GDP.
The budget follows the narrative of aspirational India, making youth, the poor, and farmers top priority.
“This Budget stresses on empowerment of the poor and the middle class and creating of new employment opportunities for them. It has been announced to construct 2 crore more houses for the poor. We aim to have 3 crore ‘Lakhpati Didis’ now. ASHA and Aganwadi workers will also get the benefit of the Ayushman Bharat scheme,” Prime Minsiter Modi said after the Union Budget was introduced in Parliament.
For the youth, by the youth
FM Sitharman assured a promising outlook for youth, announcing a new scheme “for strengthening deep-tech technologies for defence purposes and expediting ‘atmanirbharta’.”
She said, “For our tech-savvy youth, this will be a golden era. A corpus of Rs 1 lakh crore will be established with a 50-year interest-free loan provided. It will be for long-term financing or re-financing with low or nil interest rates.”
PM Modi was confident of enumerable job opportunities for youngsters. “This budget has a reflection of the young aspirations of a young India. Two important decisions were made within the Budget. For research and innovation, a fund of Rs 1 lakh crore has been announced,” he said.
Infrastructure strengthening
The Finance Minister also announced an 11% increase in infrastructure spending in an effort to strengthen the country’s infrastructure. In distributing resources, the government aims at improving accessibility and boosting the economy.
The budget also highlights the replacement of 40,000 rail coaches in the Vande Bharat project. It is anticipated that this massive project will modernise and boost the effectiveness of the nation’s rail system.
However, opposition leaders believe the Budget lacks substance. Shiromani Akali Dal MP Harsimrat Kaur Badal went to the extent of calling it “hollow”.
“Is this a budget to provide employment to the unemployed… This budget is nothing but to woo people in this year’s Lok Sabha elections,” said Congress leader Adhir Ranjan Chowdhury.
“Is this a budget to provide employment to the unemployed… This budget is nothing but to woo people in this year’s Lok Sabha elections,” asked Congress leader Adhir Ranjan Chowdhury.
The next Budget will be announced in July after the new government is sworn in.
Takeaways
– FY25 capex target at Rs 11.1 lakh crore, up 11.1%
– No change in direct, indirect taxation
– FY25 fiscal deficit target at 5.1% of GDP
– FY24 fiscal deficit revised to 5.8% of GDP
– Emphasis on four major pillars: poor, women, youth and annadatas
– Tax receipts projected at Rs 26.02 lakh crore in FY25
– Average GST monthly collection has doubled to Rs 1.66 lakh crore
– Projects for tourism to be considered in islands including Lakshawdeep
– Government to back EV manufacturing, charging infrastructure
– 50-year interest free loans for youth
– Ayushman Bharat cover extended to all Anganwadi and Asha workers
– Govt to help in provide housing for middle class
– India-Middle East-Europe corridor touted as a game changer for the country
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